PASAY CITY — Senate President Sherwin Gatchalian expressed confidence that the Take-home Pay for All Working Filipinos Act, or Ginhawa bill, will soon hurdle the Senate.
The senator authored Senate Bill 56, which seeks to raise the annual income tax exemption threshold from P250,000 to P400,000. It also proposes increasing the ceiling for tax-free bonuses from P90,000 to P150,000, effectively allowing qualified workers to retain a larger portion of their earnings. The measure is among the priority legislative agenda of the Legislative-Executive Development Advisory Council, underscoring its importance to the administration’s economic and social policy objectives. The House-approved version, however, proposes a lower income tax exemption ceiling of P350,000. Gatchalian said the measure is urgent, saying the Philippine economy grew by only 2.3 percent in the second quarter, with the slowdown attributed in part to a sharp contraction in household consumption. ”Pump priming can raise economic activity, but a stronger recovery depends on faster output and significant growth in household consumption,” he added. Gatchalian said providing tax relief to minimum-wage and low-income workers would put more money in their pockets, allowing them to increase spending while cushioning the impact of high inflation on their purchasing power. ”Household consumption is a major driver of economic activity. When workers have more disposable income, they are better able to meet their basic needs and spend on goods and services, helping generate demand across the economy,” Gatchalian said.
